Field of the Disclosure
The present disclosure relates to a system and method for protecting business assets through dynamic segregation of business assets and liabilities. More specifically, the present disclosure relates to a system and method for dynamically forming, funding, maintaining and terminating Cells within a Series Limited Liability Company or any other form of a protected cell company.
Related Art
A Series Limited Liability Company (“Series LLC”) is a form of a limited liability company where the assets of each series of a Series LLC are protected from liabilities arising from the other series therein. In states with enabling legislation for a Series LLC, each series (“Cell”) of a Series LLC can own distinct assets, incur separate liabilities, contract in its own name, have its own Operating Agreement, and have different managers and members, but only the Series LLC (and not each Cell therein) must file a single certificate of formation and pay a single annual state fee in the state of formation, regardless of the limitless number of Cells therein.
Despite the advantages (e.g., unlimited asset segregation potential, cost savings, etc.) of a Series LLC, especially compared with a similarly structured set of separately formed traditional LLCs, there are still a number of contract costs and administrative burdens associated with forming, maintaining, and terminating separate Cells in a Series LLC. Current systems require an arduous process of drafting, and having members sign, “separate series agreements” to form, fund, maintain, and terminate Cells of a Series LLC.
Therefore, there is a need for a system and method that can dynamically form, fund, maintain separate records, and terminate Cells easily and efficiently.